Monday, August 11, 2014

KHEE San Bhd shares peaked temporarily at the three-year high of 69 sen on March 11.

In the wake of an apparent profit-taking, prices succumbed to pressure to retreat, see-sawing with a mild downward bias on correction, which saw prices pulling back to a low of 56.5 sen on June 11 before making a fresh attempt to recover.

Khee San bounced back to an intra-day high of 64.5 sen but settled flat at 62 sen yesterday, undermined by a steep fall in the broader market.

Based on the daily chart, it appears that the recent correction phase of this counter may be about to come to an end, if not over apparently, as prices had overcome the five-month-old descending line briefly, supported by significant trading volumes. If this breakout is real, investors can expect the stock to firm in the short term amid follow-through interest.